Deduction Under Section 80D for Mediclaim Premium to Individual, HUF, Senior Citizens

Deduction Under Section 80D in respect of Medical Insurance Premium (Mediclaim)  paid to keep in force insurance by individual either on his own health or on the health of spouse,  parents and  dependent children or HUF on the health of any members of the family. A Mediclaim policy is a must because should you fall sick or meet with an accident, your medical bills could wipe out your savings.

Features of Mediclaim policy

1. Premium based on Age: – As in term insurance, the premium rates will vary among the insurers and will also depend on your age. The older you are, the heftier the premium. For instance, Mediclaim policy from General Insurance Corporation has a fixed premium till 35 years and then it changes in 10-year slabs.

Health

2. Who is it deduction Under Section 80D available to?

  • Individual (resident or non resident, Indian Citizen or foreign citizen):- In case an individual is taking the deduction, the medical insurance policy can be taken in the name of any of the following: the taxpayer or the spouse, parents or dependent children* of the taxpayer.
  • HUF (Hindu undivided Family may be resident or non resident) :- In case a HUF is taking the deduction, the medical insurance policy can be taken in the name of any member of the family.

Note

  • Dependent Children (i.e. legitimate or legally adopted children).  Children above 18 years, if employed, can not be covered. Male children, if not employed, but a bonafide student can be covered upto age of 25 years. Female children, if not employed, can be covered until the time she is married.
  • parents of Individual  – parents need not be dependent on the Assessee.

Mediclaim Insurance Section 80D

3. Entry Age: This insurance is available to a person between the age of 18 to 59 years.  However, the Policy can be renewed upto the age of 80 years.

a) Children above the age of 3 months can be covered provided parents are covered concurrently and suitable premium is paid. If the child above 18 years is employed or if the girl child is married, he or she shall cease to be covered under the policy. However male child can be covered upto the age of 25 years if he is a bonafide regular student and fully dependent on primary insured. Female child can be covered upto the time, she is unmarried.

b) If the insured has taken continuous Mediclaim insurance policy with us for at least 5 years prior to attaining the  age of 80 years the policy can be renewed beyond the age of 80 upto  the age of 90 years as a special case with the approval of Regional Incharge on case to case basis. The premium chargeable shall be 10% of the premium for 75-80 years age slabs for  proposers above 85 and 20% of the premium for 75-80 age slabs for proposers above 90.

c) No inclusion of family member during currency of policy is permissible except for a new born child between the ages of 3 months to 6 months and newly married spouse within 60 days of marriage.  Otherwise inclusion of family member shall be allowed only at the time of renewal. Prorata premium shall be charged for such inclusion during the currency of the policy for the unexpired period.

4. Sum Insured: Minimum sum insured shall be Rs 50,000/- and can be increased in multiples of Rs 25,000/-upto Rs 5 lacs.  The sum insured must be identical for primary insured and the dependents. However, the children may be covered for 50% Sum Insured as per 4 above.

5. Payment of Mediclaim Premium under section 80D out of taxable Income:- The amount must have been paid using the taxpayer’s income chargeable to tax.

6. In addition to deduction u/s, 80C, 80CC and 80CCD,:- This is an additional deduction available which do not include deduction  u/s 80C, 80CCC and 80CCD for which overall limit is  is Rs. 1,50,000 (Rs. 1 Lakh upto A.Y. 2014-15).

7. Partly contribution: If part payment is done by you and part payment by the parent, both can claim deduction Under Section 80D to the extent of their contribution subject to maximum allowed but amount should be paid directly to insurance company and paid through mode other than by cash.

8. Mode of payment: The premium may be paid by any mode of payment other than cash. Note prior to 1st April 2009, premium payment was required to be done only by cheque. Credit card or other online payment mechanism where not allowed. Now all payment modes except cash payment are accepted.

9. Which Mediclaim Premium is allowed? : – Mediclaim premium paid under Medical insurance scheme of General Insurance Corporation approved by the Central Government, or any other insurer approved by the Insurance Regulatory & Development Authority (IRDA).

10. Proposer of the policy is not must: The premium is to be paid to effect or keep in force insurance policy, there is no condition that assessee should be the proposer of the policy.

11. Part contribution: Assessee can  partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)

12. What is the amount of the deduction Under Section 80D?

For Individual

  • Basic deduction Under Section 80D: Mediclaim premium paid for Self, Spouse or dependant children. Maximum deduction Rs 25,000.
  • In case any of the persons specified above is a senior citizen (i.e. 60 years or more) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is  Rs. 30,000 (this amount has been increased to Rs 50000/- from A.Y 2019-20)
  • For uninsured super senior citizens (more than 80 years old) & senior citizen( i.e. 60 years or more) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D (This amount has been increased to Rs 50000 from A.Y 2019-20)
  • Additional deduction Under Section 80D: Mediclaim premium paid for parents. Maximum deduction Rs 25,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 30,000.( it has been increased to Rs 50,000 from A.y 2019-20)

For HUF

  • Mediclaim premium paid for any member of the HUF. Maximum deduction Under Section 80D Rs 25,000. In case any member of the HUF covered by  Mediclaim policy is a senior citizen, deduction Under Section 80D amount is enhanced to Rs. 30,000.( it has been increased to Rs 50,000 from A.y 2019-20)

EXAMPLE- 1

1. An individual assessee pays (through any mode other than cash) during the previous year medical insurance premia, out of his taxable income, as under:

(i) Rs 18,000/- to keep in force an insurance policy on his health and on the health of his wife and dependent children;

(ii) Rs 32,000/- to keep in force an insurance policy on the health of his parents.

He will be allowed a deduction of Rs 43,000/- (Rs. 18,000/- + Rs. 25,000/-) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs 48,000/- (Rs.18,000/- + Rs.30,000/).  However  in case any of his parent is senior citizen the deduction W.e.f A.Y 2019-20 the  will be Rs 68,000/- (Rs.18,000/- + Rs.50,000/) Whether the parents are dependent or not, is not a consideration for deciding the deduction under the new provisions.

Further, in the above example, if cost of insurance on the health of the parents is Rs 32,000/-, out of which Rs 17,000/- is paid (by any non-cash mode) by the son and Rs 15,000/- by the father ( who is a senior citizen), out of their respective taxable income, the son will get a deduction of Rs 17,000/- ( in addition to the deduction of Rs 18,000/- for the medical insurance on self and family) and the father will get a deduction of Rs 15,000/-.

EXAMPLE 2

An individual assessee pays through credit card during the previous year health insurance premium as under:

1. Rs. 18,000 to keep in force an insurance policy on his health and on the health of his wife and children 2. Rs. 32,000 to keep in force an insurance policy on the health of his parents.

Under the new provisions, he will be allowed a deduction of Rs. 43,000 (Rs. 18,000 + Rs. 25,000) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs. 48,000 (Rs. 18,000 + Rs. 30,000). Whether the parents are dependent or not, is not a consideration for deciding the deduction under Section 80D.

However from A.Y 2019-20 the deduction shall be as under:

Under the new provisions, he will be allowed a deduction of Rs. 43,000 (Rs. 18,000 + Rs. 25,000) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs. 68,000 (Rs. 18,000 + Rs. 50,000). Whether the parents are dependent or not, is not a consideration for deciding the deduction under Section 80D.

EXAMPLE- 3

Question:- Do I need to take medical insurance for both my parents, who are senior citizens. I would appreciate if you can let me know.

Answer:- Deduction in respect of medical insurance premium for A.Y. 2016-17 is Rs 25,000 for an individual and Rs 30,000 for a senior citizen. However if someone were to buy medical insurance for his parent/s, an additional deduction of Rs 25,000 (over and above Rs 25,000) will be available. If such parent/s were senior citizen, the additional deduction would be Rs 30,000. So a person insuring himself, his spouse, children and parents could potentially get a deduction of Rs 50,000.

However from A.Y 2019-20 the deduction shall be as under:

Deduction in respect of medical insurance premium for A.Y. 2019-20 is Rs 25,000 for an individual and Rs 50,000 for a senior citizen. However if someone were to buy medical insurance for his parent/s, an additional deduction of Rs 25,000 (over and above Rs 25,000) will be available. If such parent/s were senior citizen, the additional deduction would be Rs 50,000. So a person insuring himself, his spouse, children and parents could potentially get a deduction of Rs 50,000.

EXAMPLE-4

Illustration

Mr. Raja (age 40 years) has made the following payments during the financial year 2017-18:

  • Payment of medical insurance premium on his policy of Rs. 15,000.
  • Payment of medical insurance premium on policy of his spouse Rs. 4,000.
  • Payment of medical insurance premium on policy of his younger daughter who is dependent on him Rs. 3,000.
  • Payment of medical insurance premium on policy of his elder daughter who is self employed and not dependent on him Rs. 5,000.
  • Payment of medical insurance premium on policy of his parents (resident and aged 68 years), Rs. 18,000 on policy of his father and Rs. 18,000 on policy of his mother. Both are dependent on brother of Mr. Raja.
  • Payment of Rs. 3,000 towards expenditure on preventive health check-up (for his own check-up and check-up of his wife).

Advice Mr. Raja regarding the admissible deduction under section 80D for the year 2017-18.

ANSWER

Considering the above provisions, the deduction in case of Mr. Raja will be as follows:

1) Medical insurance premium on his policy of Rs. 15,000 will qualify for deduction.

2) Medical insurance premium on policy of his spouse of Rs. 4,000 will qualify for

3) Medical insurance premium on policy of Rs. 3,000 of his younger daughter who is dependent on him will qualify for deduction. However, premium of Rs. 5,000 on policy of elder daughter who is not dependent on him will not qualify for deduction.

4) Medical insurance premium on policy of his parents of Rs. 36,000 will qualify for deduction (being Senior Citizens)-limited to Rs. 30,000.

5) Expenditure on preventive health check-up will also qualify for deduction, but, it will be restricted to Rs. 3,000 only (as the overall limit of deduction under section 80D in respect of assessee and his family cannot exceed Rs. 25,000).

Thus, total deduction under section 80D will amount to Rs. 22,000 on account of expenditure on premium paid in respect of his own health, health of his spouse and dependent daughter and Rs. 30,000 in respect of premium paid on policy of his parents. Deduction on account of expenditure on preventive health check-up will be Rs. 3,000 Total deduction under section 80D will amount to Rs. 55,000 (Rs. 22,000 + Rs. 30,000 + Rs. 3,000).

EXAMPLE-5

(i) For Individual and his family Rs.
Health insurance premia 21,000
(ii) For parents
Health insurance of Mother : 18,000
Medical expenditure 80D on father (Super senior citizen) ) 15,000
Deduction eligible u/s 80D Rs. 21000 + Rs 18,000 + Rs. 15000 = Rs. 54,000

FAQ on Mediclaim-

1.Why is deduction u/s 80D allowed?

The deduction is allowed for

1. buying medical insurance , popularly known as Mediclaim policy.

2. Keeping in effect a medical insurance already bought.

2. How much deduction available?

If Mediclaim is bought for any person other than person having Aged 60 years or more , then Rs 25,000.

If Mediclaim is for person having 60 years or more , Rs 30,000 (this has been increased to 50,000 from A.Y 2019-20)

3. Who can claim deduction?

Individual and HUF making payments for medical insurance.

1. Individual can claim for self, wife, dependent children and parents.

2. HUF can claim for Mediclaim policy on members.

4. What should be mode of payment of insurance premium?

Any mode other than cash will make one eligible for deduction u/s 80D.

5. If office deducts salary for medical insurance for employee and his family , whether the employee can claim deduction u/s 80D?

Yes, for the fact that the mode of payment is any ,other than cash, and It is employee who paid for himself or his family’s insurance.

Get a certificate from the employer regarding deduction of amount for medical insurance purpose.You can claim to the extent the dedcution has been made by the employer for medical insurance subject to maximum RS 25,000

6. If an individual buys Mediclaim for himself and for his parents exceeding 60 years, how much can he claim as deduction?

Good question.  Subsection 2 of section 80D provides as under

2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—

(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or any contribution made to the Central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or any payment made on account of preventive health check-up of the assessee or his family as does not exceed in the aggregate [twenty-five] thousand rupees; and*

(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee or any payment made on account of preventive health check-up of the parent or parents of the assessee as does not exceed in the aggregate [twenty-five] thousand rupees;

It is clear that an individual can claim deduction up to Rs 75,000 for medicalim insurance , if he makes insurance for his family and any parents exceeding 60 years.

7. Can somebody having invested the amount from income exempt from tax or by taking loan, claim deduction u/s 80D?

No as per opening line in the section 80D , the payment should be only out of income chargeable to tax. Read the opening line :

80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.

8. Can you get deduction u/s 80D for Overseas Mediclaim policy?

Yes, in author opinion , there in nothing in the provision u/s 80D which prohibits claim of deduction u/s 80D for medical insurance for overseas journey. The only requirement, as given in section 80D(5) is that the insurance companies issuing such overseas insurance should be one of these

(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by

(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or

(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).

Appendix: Section 80D of the Income Tax Act

80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode as specified in sub-section (2B), in the previous year out of his income chargeable to tax.

(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—

(a)  the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or any contribution made to the Central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or any payment made on account of preventive health check-up of the assessee or his family as does not exceed in the aggregate twenty-five thousand rupees; and*

(b)  the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee or any payment made on account of preventive health check-up of the parent or parents of the assessee as does not exceed in the aggregate twenty-five thousand rupees;

(c)  the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate [thirty] thousand rupees; and

(d)  the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate [thirty] thousand rupees:

Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a [very] senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:

Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed [thirty] thousand rupees.

Explanation.—For the purposes of clause (a), “family” means the spouse and dependant children of the assessee.

(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.

(2B) For the purposes of deduction under sub-section (1), the payment shall be made by—

 (i)  any mode, including cash, in respect of any sum paid on account of preventive health check-up;

(ii)  any mode other than cash in all other cases not falling under clause (i).

(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1), shall be the aggregate of the following, namely:—

(a)  whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate twenty-five thousand rupees; and

(b)  the whole of the amount paid on account of medical expenditure incurred on the health of any member of the Hindu undivided family as does not exceed in the aggregate [thirty] thousand rupees:

Provided that the amount referred to in clause (b) is paid in respect of a [very] senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:

Provided further that the aggregate of the sum specified under clause (a) and clause (b) shall not exceed [thirty] thousand rupees.

(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, [or a very senior citizen,] the provisions of this section shall have effect as if for the words “twenty-five thousand rupees”, the words [thirty] thousand rupees” had been substituted.

Explanation.— [***]

Following sub-section (4A) shall be inserted after sub-section (4) of section 80D by the Finance Act, 2018, w.e.f. 1-4-2019 :

(4A) Where the amount specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified therein for more than a year, then, subject to the provisions of this section, there shall be allowed for each of the relevant previous year, a deduction equal to the appropriate fraction of the amount.

Explanation.—For the purposes of this sub-section,—

 (i)  “appropriate fraction” means the fraction, the numerator of which is one and the denominator of which is the total number of relevant previous years;

(ii)  “relevant previous year” means the previous year beginning with the previous year in which such amount is paid and the subsequent previous year or years during which the insurance shall have effect or be in force.

(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by—

(a)  the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or

(b)  any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).

Explanation.—For the purposes of this section,—

 (i)  “senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year;

[(ii)  “very senior citizen” means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.]

(Article was First Published on this Website on 06.09.2009 and Republished  with Amendments in the Article)

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178 responses to “Section 80D Deduction for Mediclaim Insurance Premium”

  1. Jayateerth haribhatt says:

    Yeshaswini is it eligible for 80D deduction

  2. D R Malaviya says:

    I am 59 years old.
    Have no health insurance policy.
    Can I claim for Rs 5000 exemption under preventive health check up? Section 80D.

    From next year, when I will be 60 years, can I claim exemption of Rs 5000/ without any claim under health policy premium or Medical expenses clause. Section 80D.

  3. Harvinder Kaur says:

    I am of age 61 now. and retired on 31st July 2017 from Delhi Government School. After retirement, my employer has got deposited Rs 78000/- to keep alive medical health card alive under Delhi Government medical card scheme. I want to know how much amount is deductible under section 80 D for A.Y. 2018 19. May I claim rebate U/S 80 D OF Rs. 30000/- for the same. please reply.

  4. surindermohan arora says:

    173 responses to “Section 80D Deduction for Mediclaim Insurance Premium”

  5. ASHOK KUMAR BALAKRISHNADAS says:

    TRIED TO ENTER INSURANCE PREMIUM UNDER CHAPTER VIA (SCH) IN ITR 3 FOR A.Y.18-19 AS HUF IS NOT ALLOWING BUT AS INDIVIDUAL IT WORKS . WHEN i CHANGE STATUS TO HUF THE COLUMNS BECOME BLANK AGAIN

  6. Bhadkamkar Avinash Vishnu says:

    I am 77 years old. I have not been covered under any mediclaim policy. Can my son aged 42 years take mediclaim policy for him, wife, minor child, dependent brother and dependent myself ?

  7. Gurpreet Singh says:

    Is tax amount charged in these policies covered under deductions..?

  8. venkatg says:

    I am 92 years old. I am contributing for medical insurance with a nationalized insurance company sinc I was 60 years. can I increase the reimbursement amount this year. I am aware of the maximum deduction of the premium amount from income for incometax purposes.

  9. Vijay Kumar Dadoo says:

    I am 74+ male, non smoker, do not take alcohol, I have suffered mild heart attack in December 2008.
    I have been denied Mediclaim policy, as I am a high risk patient.
    1. Any Insurance Co. who will cover me?. Apart from Heart problem, there are hundred more diseases, or possibility of an accident. Therefore, I intend covering myself.
    2. I understand, there is provision of reimbursement of Medical bills of expenses for Sr. citizens. Kindly guide me. Kindly reply also at vijayengrs44@gmail.com

  10. A.T.POONAWALLA says:

    Please let me know if i can claim a deduction from my income u/s 80D as Preventive Medical Test expenses for Laboratory tests
    and doctor’s fees for ass. year 2018-19, and
    up to what maximum amount.
    Thank you.

  11. Kaushal Abrol says:

    Hi, I purchased a Religare Health Insurance in Mar 18 and paid premium for 03 years. The policy period is 08 Mar 18 to 07 Mar 2021. How should I claim tax rebate under 80D for 18/19 & 19/20. Unfortunately I was late in declaring the same to my accountant for 17/18.

  12. Tushar says:

    I am holder of mediclaim policy. I pay mediclaim premium through cheque only. I have receipt from oriental insurance with stamp and indication of my cheque number. I have provided my bank statement also which clearly show that against that specific cheque number, amount is deducted from my account. But I am asked for providing special certificate which indicates that this premium is paid through cheque and entitled for tax deduction under section 80D.
    As far as my understanding, it is sufficient if receipt indicates that it is paid through cheque for getting tax benefits. Please suggest.

  13. upendra pandey says:

    I paid Rs 12000/- for mediclaim .How much I got benefit .
    Rs 12000/- or 10% of premium paid by me

  14. VK SRIVASTAVA says:

    SIR..
    PLEASE LET ME KNOW IF ANY INSURANCE TERM POLICY CAN ALSO BE CONSIDERED IN 80 D..
    FOR WHICH WE NORMALLY TAKE MEDI-CLAIM POLICY..

  15. Akhilesh says:

    I have a ULIP Plan applicable under 80C as well as 80D for which i invest annually an amount of Rs.100000/- . In addition to that i have investment under PF of Rs 50000/- and PPF for 25000/- under 80C.
    As 150000 is the limit under 80C, Can i show 75000 from ULIP under 80C and 25000 under 80D for more tax savings?

  16. Deepak says:

    If an individual pays medical premium for his parents who are not senior citizens , Is he eligible for deduction u/s 80d?

  17. Sandip Choudhury says:

    Dear Sir
    Can claim Mediclaim with service tax?
    regards
    Sandip Choudhury

    • Susheel Navlakkha says:

      I make payment Rs. 15000 (Rs. 13000 for premium and Rs. 2000 service tax) for my health insurance How much tax exemption can I avail under section 80D

    • Chandra Sekhar Das says:

      Whether GST paid with mediclaim policy will be considered for exemption under 80D.

  18. khagesh gupta says:

    Me and my father is not covered in single policy. I am paying for both policy. Am i liable for 80D for my father policy.

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